Buy CATL’s Shenzhen Stock and Sell HK Peer: JPMorgan
A battery pack cross-section on display at the Contemporary Amperex Technology Co. Ltd. (CATL) booth at the IAA Transportation fair in Hannover, Germany.
Photographer: Krisztian Bocsi/BloombergBuy Contemporary Amperex Technology Co.’s Shenzhen-traded shares and sell their Hong Kong-listed peers, as the expiry of a sales ban on some early key investors approaches, according to JPMorgan Chase & Co.
The cornerstone investors of the Chinese battery maker’s Hong Kong listing in May will be able to sell their holdings starting Nov. 20, potentially unleashing nearly 50% of the company’s so-called H shares outstanding, the US bank’s sales and trading desk wrote in a note. The expiry may act as a key catalyst for reversing the H shares’ premium over their onshore counterparts, according to the note.